Download PRMIA : 8007 Questions & Answers as PDF & Test Software
Updated: May 27, 2026
No. of Questions: 133 Questions & Answers with Testing Engine
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PRMIA Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition Sample Questions:
1. Suppose a discrete random variable can take on the values -1, 0 and 1 each with a probability of 1/3. Then the mean and variance of the variable is
A) mean is 0, variance is 1/3
B) mean is 0, variance is 1/2
C) mean is 1/3, variance is 1/3
D) mean is 0, variance is 2/3
2. A simple linear regression is based on 100 data points. The total sum of squares is 1.5 and the correlation between the dependent and explanatory variables is 0.5. What is the explained sum of squares?
A) 1.125
B) 0.375
C) 0.75
D) 0.3333
3. Newton-Raphson iteration is used to find a solution of x5 - x3 + x = 1. If xn = 2, what is xn+1?
A) 1.623
B) 1.638
C) 0.377
D) 2.362
4. The Lagrangian of a constrained optimisation problem is given by L(x,y,) = 16x+8x2+4y-(4x+y-20), where is the Lagrange multiplier. What is the solution for x and y?
A) None of the above
B) x = 0, y = 20
C) x = -1, y = 0
D) x = 5, y = 0
5. Which of the following is a false statement concerning the probability density function and the cumulative distribution function of a random variable?
A) the CDF approaches 1 as its argument approaches infinity.
B) the definite integral of the CDF from minus infinity to plus infinity is undefined.
C) the PDF is non-negative.
D) the definite integral of the PDF from minus infinity to plus infinity is zero.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: D |
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